Jack in the Box Inc. (NASDAQ:JACK) Q1 2018 Earnings Conference Call Transcript

Feb 22, 2018 • 11:30 am ET


Jack in the Box Inc. (NASDAQ:JACK) Q1 2018 Earnings Conference Call Transcript


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Good day, everyone, and welcome to the Jack in the Box Inc. First Quarter Fiscal 2018 Earnings Conference Call. Today's call is being broadcast live over the Internet. A replay of the call will be available on the Jack in the Box corporate website starting today.

(Operator Instructions)

At this time, for opening remarks and introductions, I would like to turn the call over to Carol DiRaimo, Chief Investor Relations and Corporate Communications Officer for Jack in the Box. Please go ahead.

Carol DiRaimo

Thank you, Teresa, and good morning, everyone. Joining me on the call today are: Chairman, CEO, Lenny Comma; and Executive Vice President and CFO, Jerry Rebel.

In our comments this morning, per share amounts refer to diluted earnings per share and operating earnings per share is defined as diluted earnings per share from continuing operations on a GAAP basis, excluding gains or losses on the sale of Company-operated restaurants, restructuring charges and the impact of tax reform on the Company's deferred tax assets as well as the excess tax benefits through share-based composition arrangements, which are now recorded as a part of income tax expense versus equity previously.

Adjusted EBITDA represents net earnings on a GAAP basis, excluding discontinued operations, income taxes, interest expense, gains or losses from the sale of Company-operated restaurants, impairment and other charges, depreciation and amortization and the amortization of franchise tenant improvement allowances. Our comments also include other non-GAAP measures, including restaurant operating margin, restaurant level EBITDA, franchise margin and franchise EBITDA. Please refer to the non-GAAP reconciliations included on the last page of the earnings release.

Following today's presentation, we'll take questions from the financial community. Please be advised that during the course of our presentation, in our question-and-answer session today, we may make forward-looking statements that reflect management's expectations for the future, which are based on current information. Actual results may differ materially from those expectations based on risks to business. The Safe Harbor statement in yesterday's news release and the cautionary statement in the Company's most recent Form 10-K are considered a part of this conference call. Material risk factors as well as information relating to Company operations are detailed in our most recent 10-K, 10-Q and other public documents filed with the SEC. These documents are available on the Investors section of our website at www.jackinthebox.com.

A few calendar items to note. Jack in the Box management plans to attend at the UBS Global Consumer and Retail Conference in Boston on March 8, the Bank of America Merrill Lynch Consumer and Retail Technology Conference in New York on March 14, and the Telsey Advisory Group's Spring Consumer Conference in New York on March 21. Our second quarter ends on April 15, and we tentatively plan to announce results on Wednesday, May 16, after market close. Our conference call is tentatively scheduled to be held at 8:30 a.m. Pacific Time, on Thursday, May 17.

And with that, I'll turn the call over to Lenny.

Leonard Comma

Thank you, Carol, and good morning. We're